Brazil’s PET demand expected to improve in the second half of 2013

22 May 2013 22:30[Source: ICIS news]

(recast with sources making comments on Wednesday instead of Monday)

SAO PAULO (ICIS)--Polyethylene terephthalate (PET) demand in Brazil is projected to improve in the second half of the year on seasonality, a local market participant said on Wednesday on the sidelines of the Feiplastic 2013 exhibition.

Demand in Brazil is generally split 45% in the first half of the year and 55% in the second half, as consumer spending rises in line with warming temperatures and the year-end holidays, the source said.

However, demand for soft drinks, bottles and PET resin is gauged as better than expected so far this year, according to the source.

The study of public consultations on PET is continuing, while a deadline for the results has not been established, the source said. One of the consultations questions the proposed increase in Brazilian import duties on PET resin from 14% to 20%. The second consultation questions the duty-free entry of PET bottle pre-forms from neighbouring Mercosur countries into Brazil.